KfW-Research. Economic Observer. Nr. 8, September 2005.
|
|
- Chastity Anthony
- 5 years ago
- Views:
Transcription
1 KfW-Research. Economic Observer. Nr. 8, September 2005.
2 CONTENTS. INFLUENCING FACTORS FOR THE BUSINESS CLIMATE IN THE GERMAN PRIVATE EQUITY MARKET. The economic importance of private equity. 3 Factors determining the business climate: empirical findings. 4 The central influencing factors for the business climate. 6 Conclusion. 8 SECURITISATION AND ACCESS TO FINANCE FOR EUROPEAN SMES. Introduction. 9 Securitisation and its impact on SME lending. 10 Obstacles to SME securitisation. 12 The role of public support. 13 Summary. 15 2
3 INFLUENCING FACTORS FOR THE BUSINESS CLIMATE BETEILIGUNGSKAPITAL IN DEUTSCHLAND. IN THE GERMAN PRIVATE EQUITY MARKET. THE ECONOMIC IMPORTANCE OF PRIVATE EQUITY. Well-developed financial markets for equity play a decisive role for economic growth, welfare and employment. As regards the dynamism and regenerative power of an economy it is not only the organised and standardised segment of the equity market which is of utmost importance but especially those segments of the equity market which do not allow for standardised trading due to the particularities of the businesses to which the investments are committed. These segments of the equity market are usually paraphrased as private equity and venture capital and are the most important sources of funds for start-ups. Lamentably, policy-maker interest for private equity markets in Germany remains largely unsatisfied because so far little descriptive data exists. Since the private equity market is characterised by informal structures, qualitative aspects play a greater role here than elsewhere. As a whole, these informal structures reflect the business climate and thus mirror major market developments. To bridge this perceived lack of information KfW and the German Association of Venture Capitalists (Bundesverband Deutscher Kapitalbeteiligungsgesellschaften - BVK) have jointly developed a business climate indicator for the German private equity market. The results of the German Private Equity Barometer (GPEB) have been published quarterly since In order to assess the relevance and importance of the factors influencing the GPEB quantitatively, KfW carried out an empirical investigation 1). 1) Cf. Zimmermann/Karle (2005): Das Geschäftsklima im Deutschen Beteiligungsmarkt. Entwicklungen und Einflussfaktoren. 3
4 FACTORS DETERMINING THE BUSINESS CLIMATE: EMPIRICAL FINDINGS. Public discussion about the factors impacting the business climate in the German private equity market suggests that an abundance of such factors exists. Due to this, KfW s GPEB takes into account a broad set of selected influencing factors of both microeconomic and macroeconomic origin to assess the market sentiment (see Figure 1 for the 14 influencing factors taken into account). In the following the key determinants of the business climate in the German private equity market throughout the years 2003 and 2004 are presented. The thrust and force of the causal effect of the factors were estimated by a regression analysis. Since the GPEB is a poll, it inevitably represents subjective assessments by the companies surveyed. But deviations from the "objective situation associated with a survey are by no means undesired because they capture the market sentiment realistically. The empirical evidence shows that the picture conveyed by the public discussion on factors determining the business climate in the private equity market has to be revised at least that of the self-perceived business situation of the industry. Merely a few factors are relevant to the assessment of the business situation. Somewhat surprisingly, these relevant factors correspond only in part to those considered as important in the public discussion. Conversely, some other factors, which are largely absent in the public discussion, proved to be of influence according to the study undertaken by KfW. Figure 1 gives an overview of the strength of the influencing factors 2). 2) The length of the bars represents the regression coefficients estimated. Thus they show the weight of an influencing factor for the assessment of the actual business situation. A reading example: The magnitude of for the strength of the factor Fund Raising implies that a onepoint improvement of the assessment of fund raising possibilities increases the business climate by points. 4
5 Figure 1: Strength of the influencing factors of the business climate Fund Raising Innovative activity of firms Availability of public funding Availability of employees Quality of investment proposals Company bankruptcies Exit possibilities * Stock market performance Write offs Business cycle situation Capital market interest rate level Demand for equity capital Entrepreneurship activity * * * * * Fiscal framework * not significantly different from zero Early Stage Later Stage Total maket Five dominant determinants of the business climate of the private equity industry can be highlighted. The importance of these main influencing factors varies only slightly between the two segments early and later stage. Surprisingly, most other potential influencing factors are of little relevance. 5
6 THE CENTRAL INFLUENCING FACTORS FOR THE BUSINESS CLIMATE. The most important influencing factor for the overall business climate in the market is fund raising. The prominent position of this influencing factor is mainly driven by its great importance in the later stage. Nonetheless, propensity to invest also plays an important role in the later stage segment. The importance of fund raising for the business climate is not very surprising because venture capital investment activity has been highly correlated with the injection of funds into the asset-class private equity in the past. The different magnitudes of the two investment phases can be explained by the higher volatility of cash inflows in the early stage segment. Innovative activity of firms also positively impacts the assessment of the business situation. This can be ascribed to the fact that innovative companies exhibit higher growth potential and are thus more attractive investment targets because higher growth potential implies higher returns. Since the German private equity market is still young it comes as no surprise that the availability of public funding is only marginally less important for the business climate than the innovative activity of firms. Availability of public funding programs is thus the third most important factor for the business climate in the private equity market. Last but not least the shake-out after the bursting of the IT bubble made investors more cautious and increased their demand for public support. Only barely less important is the availability of fund managers as the fourth most important influencing factor for the business climate. The 6
7 impact of this special aspect of the labour market also originates in the emergent nature of the German private equity market. The comparatively young market has so far produced only a small pool of experienced investment professionals. The success of a private equity firm depends crucially on the attractiveness of its deals. It is thus hardly surprising that the quality of the incoming investment proposals positively influences the business climate of the industry. On the face of it, it seems unusual that this factor is only the fifth most important. But a second glance puts this first impression into perspective. Firstly, the quality of the investment proposals is the second most important factor in the early stage segment. Secondly, the magnitude of the estimated regression coefficients differs only slightly for the five central influencing factors. Three factors can be identified that are only relevant to one of the two segments: the evolution of company bankruptcies, write-offs and stock market performance. The magnitude of company bankruptcies is the third most important factor for the later stage but is not relevant for the early stage. The reason for the varying importance of company bankruptcies between the two segments can be explained by the fact that insolvencies are nothing exceptional in early stage financing, whereas later stage financiers expect that a far smaller share of their portfolios will have to be written off. In the early stage, two other factors do play a certain albeit minor role: stock market performance and write-offs. This finding is surprising 7
8 because congested exit channels and high failure rates are often cited as major obstacles for the development of private equity in Germany. An explanation as to why stock markets and write-offs hardly contribute to the business climate is that after the turn of the millennium shake-out, input-side factors like fund raising and investment proposal quality have become increasingly important. This points towards a consolidation of the German private equity market. CONCLUSION. After two years of shake-out the German private equity market has started to grow vigorously. Consequently, and also due to its high economic importance, private equity has again been focused on by economic policy debate. Together with BVK, KfW has developed Germany s first representative business climate indicator for the private equity market: the German Private Equity Barometer (GPEB). An empirical investigation of the influencing factors surveyed in the GPEB yielded some surprising results. Conversely to public debate, not a plethora of factors but rather only very few factors are relevant for the business climate. During the period investigated ( ) these were, in particular, fund raising opportunities, the quality of the investment proposals and the innovative activity of the firms. In contrast, macroeconomic indicators such as capital market interest rates or business cycle conditions were only of minor relevance. Author: Nick Ehrhart 8
9 SECURITISATION AND ACCESS TO FINANCE FOR EUROPEAN SMES. INTRODUCTION. SMEs are a key element for more employment, innovation and competitiveness in Europe. Meeting the goals of the renewed Lisbon Agenda will therefore require a substantial increase in investments by European SMEs. To innovate and expand, SMEs depend on reliable access to finance. Assuring that there is an efficient intermediation of funds to SMEs is thus an important policy objective. Improved internal rating tools and risk management processes have increased the risk awareness of financial institutions towards SME loans. The implementation of Basel II will reinforce this development. Furthermore a growing number of banks become reluctant to take loans on balance and hold them until maturity. Instead, they tend to underwrite loans only if they can sell the credit risk subsequently. Modern and innovative instruments are needed to secure the financing for SMEs in this changing banking environment. One such instrument is the securitisation of SME loans. From this perspective it makes perfect sense that the Commission takes first steps to utilise securitisation for promotional purposes and plans to introduce a securitisation financial instrument within the Competitiveness and Innovation Programme (CIP) proposed in April. In order to distinguish the key characteristics of the European SME securitisation market and to encourage discussion about the effectiveness of securitisation in improving access to finance for SMEs, KfW Banken- 9
10 gruppe and European Investment Fund (EIF) jointly organised and hosted a conference entitled Securitisation and Access to Finance for European SMEs: too small a market? The conference provided a forum for representatives from commercial banks, the European Commission, the European Parliament, investment banks, financial consultants and the business community to examine a range of issues current in the European securitisation market. The event also provided the opportunity to present the findings of an independent study on SME securitisation and its impact on the availability of credit for SMEs that was commissioned by DG Enterprise and carried out by GBRW Ltd. SECURITISATION AND ITS IMPACT ON SME LENDING. Securitisation is a flexible financing technique that creates a secondary market for SME loans: a bank (the originator ) extends loans to its SME customers ( primary market ), bundles them in a pool, and sells the loan pool ( portfolio ) to capital market investors. These investors usually buy a piece of the portfolio (a tranche ). They can hold the tranche until maturity or sell it to other investors on the secondary market. For those involved, securitisation has many advantages: - Securitisation is an alternative funding source - both for banks that sell their loan portfolios and for SMEs who will ultimately benefit from the more favourable funding; 10
11 - Securitisation may provide club funding for smaller banks which have no access to the capital market themselves: they can pool their respective portfolios and attain capital market funding at competitive rates; - Securitisation introduces liquidity to the SME sector SME loans become a tradable product, and banks can start to buy or sell SME credit risk to diversify their loan portfolios. This in turn will expand their capacity in underwriting new SME loans. - Securitisation helps to diversify the investor base for SME loans. New investors such as insurance companies or pension funds worldwide can invest in SME loans, thus providing SME financing via the capital market. - Securitisation is a very useful tool for risk management. Securitisation is an efficient way for banks to manage their loan exposures so as to release economic and regulatory capital. In turn this enables them to grow their SME lending without increasing their capital base. How does this help SMEs? The fact that the loan to a particular SME has been securitised, may but does not necessarily, improve access to finance for that same SME. However, at the portfolio level, the situation is quite different. Because of the benefits of securitisation to banks, they are 11
12 able to extend more new loans and to expand their lending to the SME market as whole. Additionally, SME borrowers will over time benefit from reduced processing costs (induced by standardisation) and improved transparency ( pricing feedback from the capital markets). Securitisation is an important ingredient of a well functioning SME credit market and has a positive impact on the overall availability of finance for SMEs. Therefore, securitisation of SME loans needs to be further developed and enhanced to at least ensure that SME loans as an asset class do not become less attractive to banks than other assets that are easier to securitise. OBSTACLES TO SME SECURITISATION. SME loans have proven to be more difficult to securitise than other assets such as prime mortgages or credit card receivables. The relatively small secondary market for SME risk mainly results from the high degree of uncertainty associated with SME loans: SME loans are not homogenous (very different sizes, legal forms, diverse collateral), underwriting is relationship-based and less standardised, and there is still a lack of data on loan performance. For these reasons, SME loans are still an underdeveloped asset class. The European securitisation markets are dominated by Residential Mortgage Backed Securities (RMBS) that account for more than 50% of the 12
13 total market. Only about five percent of the European securitisation volumes are backed by SME loans. The GBRW study estimates that only one or two percent of securitisable SME claims on bank balance sheets have actually been securitised. Therefore it is fair to conclude that the European SME securitisation market is still too small, and SMEs do not fully benefit from the many and lasting advantages which the access to the capital markets via securitisation offers. THE ROLE OF PUBLIC SUPPORT. The GBRW Study considers several measures that would have a positive impact on the development of the SME securitisation market and its potential to improve access to finance for SMEs: - First, banks should ensure that the credit facilities made available to SMEs are better suited for securitisation (e.g., by standardisation). - Second, SME associations should support such banking sector initiatives and encourage greater financial transparency of SMEs, thereby enabling banks to standardise their SME portfolios to facilitate securitisation. - Third, governments and regulatory authorities should ensure standardised international and domestic accounting standards and consistent bank regulatory rules governing securitisation. 13
14 Moreover, the public sector should continue to play an active role in supporting SME securitisation. There are a number of publicly led initiatives to encourage more SME securitisation activities, not only in Europe, but also in the United States and in Japan, where the Small Business Administration (SBA) resp. the Japanese Association of Small and Medium Size Enterprises (JASME) have introduced schemes to support the development of a more liquid secondary market for SME loans. In Europe, KfW and EIF play vital roles as market catalysts, standard setters and investors. Although they have been very effective so far in jump starting SME securitisations, GBRW recommends that they further strengthen their promotional activities and support the SME securitisation market by buying riskier mezzanine tranches from SME transactions. Resources for these risk positions should come from specifically allocated public sector budgets. Such investments would not differ materially in risk content from existing loan guarantee programmes, but they provide a unique feature: investing in a small mezzanine tranche of a SME securitisation transaction facilitates the securitisation of a multiple amount of SME loans ( leverage effect ). Therefore, mezzanine investments are a very efficient way to deploy public resources. They would complement existing programmes to provide a powerful package to encourage the securitisation of the SME loans and to improve SMEs access to finance. 14
15 More information can be found in the documentation of the conference that is available at SUMMARY. Public support of SME securitisation is a timely response to a changing banking and capital market environment. It is vital in order to improve access to finance for SMEs. The instruments to be used are highly costefficient. Public support should be allocated towards these instruments and encourage SME securitisation in Europe. Author: Dr. Omar Ranné 15
16 KfW Bankengruppe Economic Department Palmengartenstraße 5 9, Frankfurt am Main Phone , Fax Infocenter KfW Förderbank Phone , Fax infocenter@kfw.de Infocenter KfW Mittelstandsbank Phone , Fax infocenter@kfw.de
KfW-Research. Economic Observer. No. 7, February 2005.
KfW-Research. Economic Observer. No. 7, February 2005. FINANCING INNOVATION AND RESEARCH INVESTMENTS FOR SMES: BETEILIGUNGSKAPITAL CHALLENGES, PROMOTIONAL IN DEUTSCHLAND. APPROACHES AND RECOMMENDATIONS
More informationSemi-Annual Report 2004.
Semi-Annual Report 2004. 1ST HALF AT A GLANCE. Financing volume exceeds last year s level. During the first half of 2004 KfW Bankengruppe (KfW banking group) achieved a volume of commitments of EUR 26.3
More informationMITTELSTANDSM NITOR 2003
MITTELSTANDSM NITOR 2003 SUMMARY Annual report on cyclical and structural issues relating to small and medium-sized enterprises. MittelstandsMonitor 2003 MittelstandsMonitor 2003 Annual report on cyclical
More informationKfW Bankengruppe surpasses record financing volume of With an overall promotional volume of EUR 70.6 billion, KfW Bankengruppe again generated
Annual Report 2008 2 KfW Bankengruppe surpasses record financing volume of 2007. With an overall promotional volume of EUR 70.6 billion, KfW Bankengruppe again generated a high level of promotional activities
More informationAFME Response to European Commission Consultation on the EU2020 Industrial Policy Flagship Initiative
AFME Response to European Commission Consultation on the EU2020 Industrial Policy Flagship Initiative 7 th August 2012 Q2.2.1 Access to finance and risk capital: please explain the importance of the issue,
More informationKfW Research. Economic Observer. No. 3, April 2003.
KfW Research. No. 3, April 2003. Economic Observer. Page 2: KfW s Management Succession Finance for Small and Medium-sized Enterprises. Page 7: Business Finance in Rough Waters. KFW S MANAGEMENT SUCCESSION
More information3rd Quarterly Report 2004.
3rd Quarterly Report 2004. OVERVIEW OF 3RD QUARTER. KfW Bankengruppe (KfW banking group) promotes the economy with about EUR 38 billion. By the end of September 2004 KfW Bankengruppe achieved a group business
More informationIntellectual property and access to finance for high growth SMEs
Ref. Ares(2014)78083-15/01/2014 EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ENTERPRISE AND INDUSTRY Financing SMEs, entrepreneurs and innovators Intellectual property and access to finance for high growth
More informationup.date Funding Activities in 2005 The Role of KfW in the Privatisation of State Enterprises News for Investors. October 2005.
up.date News for Investors. October 2005. Funding Activities in 2005 The Role of KfW in the Privatisation of State Enterprises e.ditorial Dear Readers, On September 18, 2005 Germany elected a new parliament,
More informationup.date Social Responsibility Not only a question of honour... News for Investors. May 2004.
up.date News for Investors. May 2004. Social Responsibility Not only a question of honour... e.ditorial KFW INTERNET LINKS. Dear Reader, On May 17 we held our Annual Press Conference on the balance-sheet
More informationACCESS TO FINANCE FOR SMEs: THE COMMISSION ACTION PLAN AND POLICY CHALLENGES AHEAD
POSITION PAPER June 2012 ACCESS TO FINANCE FOR SMEs: THE COMMISSION ACTION PLAN AND POLICY CHALLENGES AHEAD KEY MESSAGES 1 2 BUSINESSEUROPE supports a number of regulatory initiatives proposed in the Action
More informationECONOMIC AND MONETARY DEVELOPMENTS
ECONOMIC AND MONETARY DEVELOPMENTS Monetary and financial developments Box 3 EVIDENCE OF THE IMPACT OF RECENT FINANCIAL MARKET TENSIONS, AS REVEALED BY BANK LENDING SURVEYS IN MAJOR INDUSTRIALISED ECONOMIES
More informationup.date Funding Q Annual Financial Statements of KfW Bankengruppe News for Investors. April 2005.
up.date News for Investors. April 2005. Funding Q1 2005 2004 Annual Financial Statements of KfW Bankengruppe e.ditorial Dear Readers, On April 12th KfW Bankengruppe presented its annual financial statements
More informationAssessing Capital Markets Union
6 Assessing Capital Markets Union Quarterly Assessment by Paul Richards Summary It is too early to make an assessment of Capital Markets Union, but not too early to give a market view of the tests by which
More informationEuropean Middle Market
European Middle Market status quo & future development Tobias-Friedrich Andres IACPM Spring General Meeting 2007 June 14th, 2007 Part I SME secondary market a status quo European SME-Sector Overview Asset
More informationThe role of regional, national and EU budgets in the Economic and Monetary Union
SPEECH/06/620 Embargo: 16h00 Joaquín Almunia European Commissioner for Economic and Monetary Policy The role of regional, national and EU budgets in the Economic and Monetary Union 5 th Thematic Dialogue
More informationResponse to EBA Discussion Paper on simple, standard and transparent securitisations
Response to EBA Discussion Paper on simple, standard and transparent securitisations Frankfurt am Main, January 2015 Europe s banks must deleverage; Europe s businesses are slowly freeing themselves from
More information1. Introduction. Good morning ladies and gentlemen.
Market based solutions to bank restructuring and the role of State Aid Control: the case of NPLs ECMI Annual Conference, Brussels, 9 November 2016 Gert Jan Koopman, Deputy Director-General, DG Competition,
More informationJapan s Nonperforming Loan Problem
Japan s Nonperforming Loan Problem Released on October 11, 1 Japan s Nonperforming Loan Problem 2 I. Summary Japan s nonperforming loan (NPL) problem should be regarded as being inextricably linked with
More information15-16 May 2008 Bratislava
Alessandro Tappi Head of Guarantees & Securitisation EIF s instruments to support SME Securitisation 15-16 May 2008 Bratislava SME Asset-Backed Financing This presentation was prepared by EIF. The information
More informationImplementing EU financial instruments in a national context
Implementing EU financial instruments in a national context David Denzer-Speck Head of the KfW Liaison Office, Brussels European Parliament, 19 June 2017 Bank aus Verantwortung Agenda 1 KfW at a glance
More informationEvaluation questions are shown in blue and will be deleted once we upload the questionnaires
COSME Evaluation Survey questionnaire -----For internal use----- Code SO Target group SO10005 SO1 Other organisations Evaluation questions are shown in blue and will be deleted once we upload the questionnaires
More informationEuropean Association of Co-operative Banks Groupement Européen des Banques Coopératives Europäische Vereinigung der Genossenschaftsbanken
Brussels, 21 March 2013 EACB draft position paper on EBA discussion paper on the process to define highly liquid assets in the LCR The voice of 3.800 local and retail banks, 55 million members, 216 million
More informationAlternative Financing Structures for Social Investment
Alternative Financing Structures for Social Investment Review Findings SEPTEMBER 2015 Introduction Background Big Society Capital was set up in 2012 to build the social investment market in the UK During
More informationup.date News for Investors. March 2004.
up.date News for Investors. March 2004. KfW s Capital Market Activities in 2004 e.ditorial Dear Readers, In the year 2003 the KfW Banking Group was marked by internal structural changes in consequence
More informationComments. Register of Interest Representatives Identification number in the register:
Comments on proposed Directive on the issue of covered bonds and covered bond public supervision & proposed Regulation on amending Regulation (EU) 575/2013 as regards exposures in the form of covered bonds
More informationup.date Capital Market Activities in the 1st Half-Year 2005 Social Responsibility/Sustainability Conference News for Investors. July 2005.
up.date News for Investors. July 2005. Capital Market Activities in the 1st Half-Year 2005 Social Responsibility/Sustainability Conference Dear Readers, e.ditorial In the present issue of our investor
More informationSecretariat of the Basel Committee on Banking Supervision. The New Basel Capital Accord: an explanatory note. January CEng
Secretariat of the Basel Committee on Banking Supervision The New Basel Capital Accord: an explanatory note January 2001 CEng The New Basel Capital Accord: an explanatory note Second consultative package
More informationThis chapter was originally published in:
THE EUROMONEY INTERNATIONAL DEBT CAPITAL MARKETS HANDBOOK 2014 This chapter was originally published in: THE EUROMONEY INTERNATIONAL DEBT CAPITAL MARKETS HANDBOOK 2014 For further information, please visit
More informationThird quarter 2017: KfW promotion activity remains high
Third quarter 2017: KfW promotion activity remains high Total promotional business volume of EUR 54.7 billion Domestic promotion at EUR 41.1 billion Strong demand in the SME sector and residential construction
More informationApplying IFRS. ITG discusses IFRS 9 impairment issues at December 2015 ITG meeting. December 2015
Applying IFRS ITG discusses IFRS 9 impairment issues at December 2015 ITG meeting December 2015 Contents Introduction... 3 Paper 1 - Incorporation of forward-looking information... 4 Paper 2 - Scope of
More informationGlobal Private Equity Barometer
Global Private Equity Barometer A UNIQUE PERSPECTIVE ON THE ISSUES AND OPPORTUNITIES FACING INVESTORS IN PRIVATE EQUITY WORLDWIDE 1 Coller Capital s Global Private Equity Barometer Coller Capital s Global
More informationPress Briefing on Capital Markets Activities Frankfurt, 13 December 2011
Press Briefing on Capital Markets Activities 2011-2012 Frankfurt, 13 December 2011 Successfull Year 2011 (Figures as of 30.09.2011) High demand for KfW promotional funding Commitments of 52.9 bn EUR in
More informationInternational Monetary and Financial Committee
International Monetary and Financial Committee Thirty-Sixth Meeting October 14, 2017 IMFC Statement by Toomas Tõniste Chairman EU Council of Economic and Finance Ministers Statement by Minister of Finance,
More informationAnswers to Questions: Chapter 5
Answers to Questions: Chapter 5 1. Figure 5-1 on page 123 shows that the output gaps fell by about the same amounts in Japan and Europe as it did in the United States from 2007-09. This is evidence that
More informationGlobal Private Equity Barometer
Global Private Equity Barometer A UNIQUE PERSPECTIVE ON THE ISSUES AND OPPORTUNITIES FACING INVESTORS IN PRIVATE EQUITY WORLDWIDE 1 Coller Capital s Global Private Equity Barometer Coller Capital s Global
More informationModern Insolvency Rules: lending a helping hand to businesses in distress
EUROPEAN COMMISSION Viviane REDING Vice-President of the European Commission, EU Justice Commissioner Modern Insolvency Rules: lending a helping hand to businesses in distress 2nd European Insolvency &
More informationSME Access to Finance
Flash Eurobarometer European Commission SME Access to Finance Executive Summary Fieldwork: September 2005 Publication: October 2005 Flash Eurobarometer 174 - TNS Sofres / EOS Gallup Europe This survey
More informationLIQUIDITY COVERAGE REQUIREMENT UNDER THE DELEGATED REGULATION OF THE EUROPEAN COMMISSION AND BASEL III RULES 1
Karolina Patora * LIQUIDITY COVERAGE REQUIREMENT UNDER THE DELEGATED REGULATION OF THE EUROPEAN COMMISSION AND BASEL III RULES 1 INTRODUCTION A general liquidity coverage requirement has already been proposed
More informationSecuritization & Financial Development in MENA Dr. Nasser Saidi* 1 Keynote speech at Securitisation World: MENA 2007 Conference Dubai, 18 March 2007
Securitization & Financial Development in MENA Dr. Nasser Saidi* 1 Keynote speech at Securitisation World: MENA 2007 Conference Dubai, 18 March 2007 Ladies and Gentlemen: 1. Thank you for inviting me to
More informationTSI Opinion on the EBA Consultation Paper, Draft Regulatory Technical Standards.
TSI Opinion on the EBA Consultation Paper, Draft Regulatory Technical Standards. On the determination of the overall exposure to a client or a group of connected clients in respect of transactions with
More informationPotential drivers of insurers equity investments
Potential drivers of insurers equity investments Petr Jakubik and Eveline Turturescu 67 Abstract As a consequence of the ongoing low-yield environment, insurers are changing their business models and looking
More informationGlobal Private Equity Barometer
Global Private Equity Barometer WINTER 2009-10 A UNIQUE PERSPECTIVE ON THE ISSUES AND OPPORTUNITIES FACING INVESTORS IN PRIVATE EQUITY WORLDWIDE Coller Capital s Global Private Equity Barometer Coller
More information7+(Ã52/(Ã2)Ã),1$1&,$/Ã,167,787,216Ã,1Ã$&+,(9,1*Ã6867$,1$%/(Ã'(9(/230(17 5( ((8523($1&200,66,21
7+(52/(2) ),1$1&,$/,167,787,216,1$&+,(9,1* 6867$,1$%/('(9(/230(17 5(3257 727+((8523($1&200,66,21 %< '(/3+,,17(51$7,21$//7',1$662&,$7,21:,7+(&2/2*,&*0%+ 129(0%(5 ([HFXWLYH6XPPDU\ (;(&87,9(6800$5
More informationInfrastructure Project Finance using Debt Fund Vehicles
Infrastructure Project Finance using Debt Fund Vehicles Ralf Garrn, Managing Director Euler Hermes Rating GmbH Agenda 1 Introduction to Euler Hermes 2 Capital Market Union 3 Renewable Project Finance Ratings
More informationGermany: Thrifty and risk averse
ECONOMIC RESEARCH DEPARTMENT Germany: Thrifty and risk averse High savings by households and enterprises pushed the current account surplus to 8.6% of GDP in 2015, a new historical high. The rise in household
More informationSubmitted online and by to
13 th May 2015 The European Commission, Brussels Submitted online and by email to fisma-securitisation-consultation@ec.europa.eu Dear Sirs, Executive Summary of AFME response to the Consultation Document
More informationSMEs contribution to the Maltese economy and future prospects
SMEs contribution to the Maltese economy and future prospects Aaron G. Grech 1 Policy Note October 2018 1 Dr Aaron G Grech is the Chief Officer of the Economics Division of the Central Bank of Malta. He
More informationFrankfurt am Main 25 November Capital Markets Outlook 2016: Broad diversification key to stable portfolios
Release Frankfurt am Main 25 November 2015 Capital Markets Outlook 2016: Broad diversification key to stable portfolios Deutsche Bank expects global economy to grow by nearly 3.5 percent Central banks
More informationFirst Synthetic Securitization of. SME Loans in CEE. Lessons Learned. Worldbank Conference. Bratislava, May
Bratislava, May 16 2008 Worldbank Conference Page 1 First Synthetic Securitization of SME Loans in CEE Lessons Learned May 2008 Why securitisation? The profitability of CEE banking business frequently
More informationQuantitative Impact Study 3 Areas of National Discretion. For use by [NAME OF NATIONALITY] banks in completing the QIS 3 Questionnaire
Quantitative Impact Study 3 Areas of National Discretion For use by [NAME OF NATIONALITY] banks in completing the QIS 3 Questionnaire For banks providing data on the Standardised and Internal Ratings Based
More informationThe four quadrant investment model
Journal of Investment Strategy aspects 67 The four quadrant investment model By David Rees Director of Research, Mirvac and Michael Wood Executive Vice-President Quadrant Real Estate Advisors Abstract
More informationEx Post-Evaluation Brief South-East Europe: Interest Rate Reduction Fund (IRRF) for South-East Europe
Ex Post-Evaluation Brief South-East Europe: Interest Rate Reduction Fund (IRRF) for South-East Europe Sector Financial intermediaries in the formal sector (2403000) Programme/Client Interest Rate Reduction
More informationThe excellent results achieved by Belfius in 2015 validate its customer satisfaction strategy
Brussels, 25 February 2016 The excellent results achieved by Belfius in 2015 validate its customer satisfaction strategy The strategic attention Belfius paid to customer satisfaction is the basis of its
More informationInnovations are the driver behind longterm economic growth. 1
Focus on Economics No. 0, rd April 0 KfW SME Panel 0: How German SMEs finance their innovations Author: Dr Volker Zimmermann, phone: +9 (0) 9 -, research@kfw.de SMEs in Germany spend just under EUR 0 billion
More informationSPECIAL PURPOSE VEHICLES AND THE SECURITISATION INDUSTRY IN IRELAND - Q&A
SPECIAL PURPOSE VEHICLES AND THE SECURITISATION INDUSTRY IN IRELAND - Q&A Special Purpose Vehicles and the Securitisation Industry in Ireland - Q&A What is a securitisation? Securitisation is the creation
More informationOtmar Issing: The euro - a stable currency for Europe
Otmar Issing: The euro - a stable currency for Europe Speech by Professor Otmar Issing, Member of the Executive Board of the European Central Bank, at Euromoney Institutional Investor Plc, London, 21 February
More informationConsultation Paper CESR Technical Advice to the European Commisssion in the Context of the MiFID Review: non-equity markets transparency
BVI Eschenheimer Anlage 28 D-60318 Frankfurt am Main Mr. Carlo Comporti Secretary General CESR Committee for European Securities Regulators www.cesr.eu Bundesverband Investment und Asset Management e.v.
More informationMonetary policy operating procedures: the Peruvian case
Monetary policy operating procedures: the Peruvian case Marylin Choy Chong 1. Background (i) Reforms At the end of 1990 Peru initiated a financial reform process as part of a broad set of structural reforms
More informationBVI comments regarding ESMA s call for evidence Competition, choice and conflict of interest in the credit rating industry Ref.
Frankfurt am Main, 31 March 2015 BVI comments regarding ESMA s call for evidence Competition, choice and conflict of interest in the credit rating industry Ref.: ESMA/2015/233 BVI 1 gladly takes the opportunity
More informationBanking on Turkey, October 21, 2008
Banking on Turkey, October 21, 2008 Slide 1. Title Slide Good morning. The global economic downturn and financial turmoil mean that economic growth will slow down in Turkey. There will be much slower growth,
More information14. What Use Can Be Made of the Specific FSIs?
14. What Use Can Be Made of the Specific FSIs? Introduction 14.1 The previous chapter explained the need for FSIs and how they fit into the wider concept of macroprudential analysis. This chapter considers
More informationBasel Committee on Banking Supervision. Liquidity coverage ratio disclosure standards
Basel Committee on Banking Supervision Liquidity coverage ratio disclosure standards January 2014 This publication is available on the BIS website (www.bis.org). Bank for International Settlements 2014.
More informationCh. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM
Ch. 2 AN OVERVIEW OF THE FINANCIAL SYSTEM To "finance" something means to pay for it. Since money (or credit) is the means of payment, "financial" basically means "pertaining to money or credit." Financial
More informationUK membership of the single currency
UK membership of the single currency An assessment of the five economic tests June 2003 Cm 5776 Government policy on EMU GOVERNMENT POLICY ON EMU AND THE FIVE ECONOMIC TESTS Government policy on EMU was
More informationREPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
EUROPEAN COMMISSION Brussels, 9.4.2018 COM(2018) 172 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on Effects of Regulation (EU) 575/2013 and Directive 2013/36/EU on the Economic
More informationIIF s Final Report on Market Best Practices for Financial Institutions and Financial Products
IIF s Final Report on Market Best Practices for Financial Institutions and Financial Products By Peter Green and Jeremy Jennings-Mares he Institute of International Finance (IIF) s T Board of Directors
More informationImpact of US real estate crisis and financial market turbulence on the economy
Allianz Dresdner Economic Research Working Paper No.: 91, 18. September 2007 Authors: Thomas Hofmann, Dr. Rolf Schneider Impact of US real estate crisis and financial market turbulence on the economy What
More informationThe new BCBS securitisation framework Gaya Branderhorst. De Nederlandsche Bank
The new BCBS securitisation framework Gaya Branderhorst De Nederlandsche Bank Introduction Gaya Branderhorst Expert Structured Finance at Dutch Central Bank Basel Workstream Securitisations EBA Subgroup
More informationSolvency II: Orientation debate Design of a future prudential supervisory system in the EU
MARKT/2503/03 EN Orig. Solvency II: Orientation debate Design of a future prudential supervisory system in the EU (Recommendations by the Commission Services) Commission européenne, B-1049 Bruxelles /
More informationRating SMEs and MidCaps
Characteristics of SMEs and MidCaps in Germany and specific considerations in the assessment of credit risk 15 November 2017 Summary Amid ongoing uncertainty affecting the banking sector and structurally
More informationEUROPEAN COMMISSION SECURITISATION PROPOSALS
EUROPEAN COMMISSION SECURITISATION PROPOSALS THE COMMISSION'S OVERALL APPROACH Securitisation is an important channel for diversifying funding sources and allocating risk more efficiently within the EU
More informationEuropean securitisation and the STS securitisation framework
aftne Finance for Europe Ref. Ares(2017)1286960 Ares(2017)3025174-13/03/2017 16/06/2017 Association for Financial Markets in Europe European securitisation and the STS securitisation framework 10 March
More informationBy United Nations Economic Commission for Africa. Publication : pages AID - MEMOIRE
Ad Hoc Experts Group Meeting On Promotion and Role of Investment Agencies in Africa Programme of Work and Aid Memoire Addis Ababa, Ethiopia 5-6 September 2000 By United Nations Economic Commission for
More informationModels for Management of Banks' Credit Risk
43 Models for Management of Banks' Credit Risk Jens Verner Andersen, Kristian Sparre Andersen, Leif Lybecker Eskesen and Suzanne Hyldahl, Financial Markets WHY USE CREDIT MODELS? Taking risks is an integral
More informationBank Disintermediation Opportunity
Bank Disintermediation Opportunity PRIVATE DEBT Credit markets resemble nature in their diversity of species. The spectrum is indeed wide and colourful. Markets have continuously shown us that not all
More informationAlternative assets. An insight into the future of investing in alternatives
Alternative assets 2014 An insight into the future of investing in alternatives Contents 01 In this, the eleventh year of our Global Alternatives Survey, we pause to consider what may lie ahead for alternatives
More informationPosition paper. of the Association of German Banks on the role of banks in financing the European economy. February 2018
Position paper of the Association of German Banks on the role of banks in financing the European economy February 2018 Bundesverband deutscher Banken e. V. Burgstraße 28 10178 Berlin Telefon: +49 30 1663-0
More information1ST QUART ER AT A GLANCE
Quarterly Report 1/2003 1ST QUART ER AT A GLANCE Mittelstandsbank off to a Good Start The Mittelstandsbank (Bank for SME), a joint promotional initiative of KfW and DtA, started work on January 1, 2003
More informationChapter VIII. Summary, Findings, Suggestions and Conclusion of the study
Chapter VIII Summary, Findings, Suggestions and Conclusion of the study 328 CHAPTER VIII SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION OF THE STUDY FDI consists of investments not merely financial but
More informationSecuritisation: Current concerns and long-term value
Securitisation: Current Concerns and Long-term Value Securitisation: Current concerns and long-term value Paul Lejot, Douglas Arner & Lotte Schou-Zibell Manila, 1 February 2008 Asian Institute of International
More informationBrussels, XXX COM(2018) 114/2
EUROPEAN COMMISSION Brussels, XXX COM(2018) 114/2 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE
More informationPRESS RELEASE. Board Members of the 13 TSI Banks decide on TSI Securitisation Infrastructure
Nr. 037E Frankfurt, April 30 st, 2004 Board Members of the 13 TSI Banks decide on TSI Securitisation Infrastructure Today members of the Managing Boards of the thirteen TSI banks (Bayerische Landesbank,
More informationSenior loan officer opinion survey. on bank lending practices and credit conditions 4 th quarter 2017
Senior loan officer opinion survey on bank lending practices and credit conditions 4 th quarter 2017 Senior loan officer opinion survey on bank lending practices and credit conditions 4 th quarter 2017
More informationDeutscher Industrie- und Handelskammertag
27.03.2015 Deutscher Industrie- und Handelskammertag 3 DIHK Comments on the Consultation Document Revisions to the Standardised Approach for credit risk The Association of German Chambers of Commerce and
More informationDemographic change bolsters private consumption and SME growth
Focus on Economics Demographic change bolsters private consumption and SME growth No. 128, 7 June 2016 Authors: Dr Michael Schwartz, phone: +49 69 7431-8695 Dr Arne Leifels, phone +49 69 7431-4861, research@kfw.de
More informationPurchase channels for German Installation Operators in EU Emissions Trading
Purchase channels for German Installation Operators in EU Emissions Trading Evaluation of a Survey among all Operators of German Installations on their Purchase Strategies in the Second and Third Trading
More informationInstruments in favour of SME Financing. International conference on guarantees Budapest 3-4 October 2013
Instruments in favour of SME Financing International conference on guarantees Budapest 3-4 October 2013 1 Helping businesses at every stage Public Stock Markets Portfolio Guarantees & Credit Enhancement
More informationCash holdings determinants in the Portuguese economy 1
17 Cash holdings determinants in the Portuguese economy 1 Luísa Farinha Pedro Prego 2 Abstract The analysis of liquidity management decisions by firms has recently been used as a tool to investigate the
More informationMAISON DE L'ECONOMIE EUROPEENNE - RUE JACQUES DE LALAINGSTRAAT 4 - B-1040 BRUXELLES
Position Paper UEAPME s 1 reply to the Green Paper Consultation on a Capital Market Union I. General comments There is no doubt that capital markets within the European Union are heavily underdeveloped
More informationA Survey of Private Equity Investments in Kenya
A Survey of Private Equity Investments in Kenya James M. Gatauwa Department of Finance and Accounting, University of Nairobi P.O. Box 30197 00100 Nairobi, Kenya Email: jmgatauwa@yahoo.com Abstract Private
More informationBasel II Implementation Update
Basel II Implementation Update World Bank/IMF/Federal Reserve System Seminar for Senior Bank Supervisors from Emerging Economies 15-26 October 2007 Elizabeth Roberts Director, Financial Stability Institute
More informationMANAGEMENT SUPPORT FOR PORTFOLIO COMPANIES OF VENTURE CAPITAL FIRMS
Presentation MANAGEMENT SUPPORT FOR PORTFOLIO COMPANIES OF VENTURE CAPITAL FIRMS Priv.-Doz. Dr. Michael Schefczyk* ZEW-Workshop Financing, Entrepreneurship and Innovation in service-based Industries Mannheim
More informationCOMMERCIAL PROPERTY INVESTMENT AND FINANCIAL STABILITY
C COMMERCIAL PROPERTY INVESTMENT AND FINANCIAL STABILITY The total direct cost to taxpayers has been estimated at around 2% of GDP. 2 Commercial property markets are important for fi nancial system stability
More informationFINANCIAL INTEGRATION FROM A REGIONAL PERSPECTIVE
1 (15) FINANCIAL INTEGRATION FROM A REGIONAL PERSPECTIVE Remarks by Ms Sinikka Salo in the conference "Changing Foresight Practices in Regional Development - Global Pressures and Regional Possibilities"
More informationRisk Concentrations Principles
Risk Concentrations Principles THE JOINT FORUM BASEL COMMITTEE ON BANKING SUPERVISION INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS Basel December
More informationANNEX 3. The ins and outs of the Baltic unemployment rates
ANNEX 3. The ins and outs of the Baltic unemployment rates Introduction 3 The unemployment rate in the Baltic States is volatile. During the last recession the trough-to-peak increase in the unemployment
More informationCLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS RESULTS OF THE FIELD TEST CONDUCTED BY EFRAG, ANC, ASCG, FRC AND OIC 17 JUNE 2013
CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS RESULTS OF THE FIELD TEST CONDUCTED BY EFRAG, ANC, ASCG, FRC AND OIC 17 JUNE 2013 TABLE OF CONTENTS EXECUTIVE SUMMARY... 3 INTRODUCTION... 6 Background...
More informationThe future of life insurance, Solvency II and investment strategies
KEYNOTE SPEECH Gabriel Bernardino Chairman of EIOPA The future of life insurance, Solvency II and investment strategies 11 th Handelsblatt Annual Conference Solvency II Munich, 15 July 2014 Page 2 of 9
More informationShortcomings of Leverage Ratio Requirements
Shortcomings of Leverage Ratio Requirements August 2016 Shortcomings of Leverage Ratio Requirements For large U.S. banks, the leverage ratio requirement is now so high relative to risk-based capital requirements
More information